Andes Achieves Oil Production Test on Vaca Muerta Wells

Onshore Argentina-focused Andes Energia announced Tuesday that it has successfully completed an intervention operation on a well testing the country's prolific Vaca Muerta formation.

Andes said that the VG x-1 well is currently producing oil without being stimulated by hydraulic fracturing. It is located on the Vega Grande oilfield in the Neuquén basin, Mendoza Province, Argentina.

The operation consisted of an intervention in the existing VG x-1 well – which was originally drilled in 1984 – with a pressure drawdown and build-up tests performed in the interval of 8,570 feet to 8,586 feet below ground level of the Vaca Muerta formation, where a total thickness of 217 feet was encountered. The operation was carried out by the Andes technical and operation team using a work-over rig recently acquired by the company, it said.

Andes added that it will now perform an extended test, installing a sucker rod pump and using existing Andes facilities and infrastructure to evacuate the oil. The company may decide to do further stimulation work in order to improve the productivity of the well depending on how it performs over the coming months.

Andes CEO Alejandro Jotayan commented in a company statement:

"This production test in Vaca Muerta is a meaningful advance in the development of our shale acreage. We are already producing from shale without needing to frack, reducing costs and the necessary break-even oil price. It de-risks 30 percent of Andes' net acreage in Vaca Muerta, more than doubling our already de-risked acreage; and is the first Andes operated intervention and production test in Vaca Muerta. We look forward to continuing to develop our acreage in this world-class play."


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